The State of Cross-Border E-Commerce in ASEAN and APAC: Opportunities Amid Trade Tensions

Introduction

As global trade dynamics shift due to US-China trade tensions, businesses across the Asia-Pacific region are increasingly looking toward regional trade partnerships to mitigate risks and capitalize on emerging opportunities. Cross-border e-commerce within ASEAN and broader APAC regions presents significant potential for businesses of all sizes in Australia, Vietnam, Malaysia, and the Philippines. The Southeast Asia cross-border e-commerce market is estimated at USD 45.39 billion in 2025 and is projected to reach USD 76.97 billion by 2030, indicating substantial growth potential.

Key Trends and Strategies

Small and Medium Enterprises (SMEs)

Vietnam

Vietnam's SMEs are experiencing a digital transformation boom, with the country emerging as a regional e-commerce hub. Vietnamese SMEs have successfully adapted e-commerce as an additional channel to sell their goods, demonstrating high motivation through extensive use of social media for online sales. The government's National Digital Transformation Program aims to streamline customs procedures, improve internet connectivity, and enhance payment systems, creating a more conducive environment for small businesses.

Recent regulatory developments show Vietnam's commitment to structured growth in this sector. In January 2025, the Vietnam E-commerce and Digital Economy Agency introduced new measures to enhance the management of cross-border e-commerce platforms, focusing on sustainability, efficiency, and transparency. A new e-commerce law is expected to be submitted for consideration in October 2025, requiring foreign e-commerce platforms to apply for licenses and establish a presence in Vietnam.

• Challenges:
  • Technical skills remain a significant barrier for many Vietnamese SMEs
  • Limited financial resources compared to larger enterprises
  • Trust issues in payment systems inhibiting customer willingness to engage in cross-border e-commerce
• Opportunities:
  • Strategic location makes Vietnam an ideal hub for cross-border e-commerce, with 20% annual growth in cross-border trade
  • Growing digital adoption and internet penetration
  • Government support through infrastructure investment and regulatory frameworks

Philippines

Filipino SMEs face unique challenges in the cross-border e-commerce landscape. While technical talent is available, finding experienced professionals with global trading and e-commerce expertise remains difficult. The cross-border operating environment is still developing, with issues such as unreliable internet speeds, particularly in remote and rural areas, making e-commerce a relatively new concept for many SMEs.

• Challenges:
  • Lack of senior employees with experience in global trading and e-commerce
  • Financial availability continues to be an issue
  • Unreliable internet infrastructure in remote areas
  • Trust issues in payment systems
• Opportunities:
  • Young, digitally-savvy population increasingly engaging in online shopping
  • Growing middle class with increased purchasing power
  • Potential to leverage the large Filipino diaspora for cross-border trade

Medium-Sized Enterprises

Vietnam

Medium-sized enterprises in Vietnam are benefiting from the country's strategic position as a manufacturing hub and its growing integration into regional supply chains. With the new e-commerce regulations coming into effect, medium-sized businesses with more resources than SMEs can better navigate the compliance requirements while benefiting from increased market transparency.

• Challenges:
  • Adapting to rapidly changing regulatory environment
  • Balancing international expansion with domestic market development
  • Competition from both local players and international entrants
• Opportunities:
  • Leveraging Vietnam's position as a manufacturing hub for cross-border sales
  • Ability to invest in more sophisticated marketing and logistics solutions
  • Potential partnerships with international platforms seeking local representation under new regulations

Philippines

Medium-sized enterprises in the Philippines have the advantage of scale over smaller businesses while maintaining more flexibility than larger corporations. This allows them to target niche markets across the region effectively.

• Challenges:
  • Logistics challenges across the archipelagic geography
  • Varying levels of digital payment adoption across target markets
  • Navigating different tax and customs regimes
• Opportunities:
  • Strong service sector expertise that can be leveraged for cross-border offerings
  • Growing domestic market providing a stable base for regional expansion
  • Increasing government support for digital transformation initiatives

MNCs/Large Enterprises

Vietnam

Large enterprises and MNCs operating in Vietnam can capitalize on the country's growing manufacturing base and strategic location. The new e-commerce regulations being developed will likely have significant implications for large platforms, requiring them to establish local offices or representatives.

• Challenges:
  • Adapting to new licensing requirements and regulatory frameworks
  • Building trust with local consumers while maintaining global standards
  • Managing complex supply chains across multiple markets
• Opportunities:
  • Leveraging Vietnam's strategic location as a regional distribution hub
  • Targeting Vietnam's young, digitally-connected population
  • Potential for strategic acquisitions of innovative local players

Philippines

Large enterprises operating in the Philippines can leverage the country's strong service sector and English language proficiency for customer support and back-office operations supporting cross-border e-commerce.

• Challenges:
  • Infrastructure limitations outside major urban centers
  • Regulatory complexity when operating across multiple jurisdictions
  • Competition from established regional players
• Opportunities:
  • Large domestic market with increasing digital adoption
  • Strategic location for serving the broader APAC region
  • Abundant talent pool for customer service and support functions

State and Recommendations

• Vietnam: Implement comprehensive training programs to improve technical skills of SMEs. Encourage collaboration between local and foreign e-commerce platforms to build trust in payment systems.
• Philippines: Invest in improving internet infrastructure in remote areas to facilitate e-commerce adoption. Provide financial support and incentives for SMEs to enhance global trading and e-commerce expertise.
• Malaysia: Continue supporting digital transformation initiatives and provide resources for continuous upskilling. Collaborate with logistics providers to address challenges in rural areas.
• Australia: Strengthen trade relationships with ASEAN countries through bilateral agreements. Offer support and resources to SMEs for adapting product offerings to local market preferences.

Comparison of Approaches Across Countries and Company Sizes

Conclusion

The cross-border e-commerce landscape across Australia, Vietnam, Malaysia, and the Philippines presents diverse opportunities and challenges for businesses of all sizes. As US-China trade tensions continue to reshape global supply chains, these markets are well-positioned to benefit from increased regional trade within ASEAN and the broader APAC region.

For businesses looking to capitalize on these opportunities, understanding the unique characteristics of each market and adapting strategies accordingly will be crucial. Vietnam's emerging regulatory framework, Malaysia's digital infrastructure, the Philippines' service sector strengths, and Australia's quality reputation all present distinct advantages that can be leveraged for successful cross-border e-commerce ventures.

The projected growth of Southeast Asia's cross-border e-commerce market from USD 45.39 billion in 2025 to USD 76.97 billion by 2030 underscores the significant potential in this region. Businesses that can navigate the challenges while capitalizing on the unique opportunities in each market stand to gain substantial benefits from this growing sector.

"The cross-border e-commerce landscape in ASEAN and APAC provides businesses with immense growth potential, but success requires a strategic understanding of market nuances and tailored approaches for different company sizes."
- Industry Expert

Opinion

Looking ahead, the increasing integration of technology and the continued support from governments in ASEAN and APAC countries will further fuel the growth of cross-border e-commerce. Businesses that prioritize digital transformation, invest in infrastructure, and adapt to changing market conditions will be well-positioned to thrive in this evolving landscape. It is essential for firms to continually monitor market trends, seek innovative solutions, and build strong partnerships to navigate the complexities of cross-border trade successfully.